According to legal regulations in Italy, the owners of real estate objects are required to pay communal service tax (Tassa sui Servizi – TASI)
to the local authorities for common services, for example, street lighting, or road maintenance works. The amount of service tax that the owner must pay depends on the value of the real estate object. The service tax is mainly paid by the owner, but in certain cases, when, for example, the real estate object is leased out for a longer time period (longer than 6 months) the owner and the tenant can split the tax amount. For the service tax calculation, the system uses the property tax data as well.
The service tax must be paid in two installments within a calendar year: the first installment is due in June, and the balance (or second installment) is due in December. If the service tax rate changes after the first installment is paid, the difference must be considered in the calculation of the balance. The date of installment payment can differ from the due dates of the property tax. The service tax data and calculation depends on the property tax of the given real estate object.
The system calculates the service tax by multiplying the tax base amount with the relevant service tax rate. For example, the following data can influence the calculation:
Tax base amount
The base amount for service tax calculation is the same as for the base amount of the property tax calculation. The base amount is only reduced by the reduction rate, if there is any reduction – other than the 50% reduction for uninhabitable and historical buildings – that can be applied.
Service tax rate
If there are city rates defined, the system uses these rates for the tax calculation instead of the default tax rates defined by the government. The tax rates depend on whether the real estate object is rented or not.
Percentage of ownership
During the service tax calculation, the system considers the percentage of ownership of the real estate object. The system also checks if the service tax can be split between the owner and the tenant.
Example
Tax base amount | EUR 80,000 |
---|---|
Real estate object rented? | Yes, whole year (from January to December) |
Tax rate of rented real estate object | 0.15% |
Percentage of ownership of real estate object | 100% |
Percentage of service tax that the owner pays because the tax amount is split between owner and tenant | 70% |
The system calculates the tax amounts for each installment as follows:
First installment:
((80,000 * 0.015) * 0.7)/2 = EUR 420 -> service tax amount that the owner pays
((80,000 * 0.015) * 0.3)/2 = EUR 160 -> service tax amount that the tenant pays
Balance payment:
((80,000 * 0.015) * 0.7)/2 = EUR 420 -> service tax amount that the owner pays
((80,000 * 0.015) * 0.3)/2 = EUR 160 -> service tax amount that the tenant pays
The following documentation describes how you can process the service tax for both lease-in and lease-out contracts.
You can process the service tax as follows:
Make the required settings as described in Customizing for Service Tax
Enter master data as described in Maintain Master Data for Service Tax
Run the ICI/IMU and TASI Cockpit
to process the service tax as described in Service Tax Report